Trade-Ideas: Kohl's (KSS) Is Today's Pre-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Kohl's ( KSS) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Kohl's as such a stock due to the following factors:

  • KSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $176.0 million.
  • KSS traded 27,597 shares today in the pre-market hours as of 7:42 AM.
  • KSS is up 3.4% today from yesterday's close.

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More details on KSS:

Kohl's Corporation operates department stores in the United States. It offers exclusive and national brand apparel, footwear, accessories, beauty, and soft home products to children, men, and women customers. The stock currently has a dividend yield of 2.8%. KSS has a PE ratio of 13.9. Currently there are 8 analysts that rate Kohl's a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Kohl's has been 2.3 million shares per day over the past 30 days. Kohl's has a market cap of $11.6 billion and is part of the services sector and retail industry. The stock has a beta of 0.90 and a short float of 12.7% with 9.95 days to cover. Shares are down 1.4% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • 36.76% is the gross profit margin for KOHL'S CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 3.07% is above that of the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.82, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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